Foreign Direct Investment (FDI) used to be all about the big numbers. Countries chased capital like trophies – the larger the project, the better. But, according to Dr. James Zhan – one of the most respected authorities on international investment – the global investment landscape is undergoing a fundamental shift.
FDI hasn’t disappeared, but it has become more discerning. The old model, centred on scale and cost efficiency, is being replaced by something more regional, more strategic, and significantly more aligned with sustainability. For local economies trying to understand what this means in practice, Dr. Zhan’s insights are not only timely – they’re essential.
Let’s look at what’s really changing – and why it may actually benefit regions like the Gatwick Diamond.
Who is Dr James Zhan?
Dr. James Zhan is a highly influential figure in international investment and development. He has held prominent positions, most notably as the Senior Director of Investment and Enterprise at the United Nations Conference on Trade and Development (UNCTAD), where he was also the Chief Editor of the UN annual World Investment Report and the journal “Transnational Corporations.”
He is recognised for his extensive experience in trade, investment, technology, and enterprise development, having provided policy advice to numerous governments and institutions across over 160 countries.
What’s behind the global slowdown in FDI?
FDI levels are declining, and it’s not just down to short-term crises or one-off events. We’re seeing deeper, structural changes in how cross-border capital moves.
Dr. Zhan has long pointed out that global vulnerabilities – from maritime trade disruptions to shifts in regulatory environments – are prompting investors to rethink their priorities. There’s been a clear move away from globalised, efficiency-driven supply chains to more regional, decentralised models. In other words, we’re witnessing a pivot from volume to resilience.
That also means a notable drop in traditional greenfield investment – those large, ground-up projects that used to define FDI headlines. But rather than signalling retreat, this shift suggests a new kind of focus. Investors are more selective. They’re looking for locations that offer not just market access but long-term stability, strategic infrastructure, and policy clarity.
Sustainable investment is moving from rhetoric to reality
One of the most striking shifts in recent years – and one Dr. Zhan has consistently championed – is the rise of sustainable and impactful investment.
This isn’t about box-ticking. It’s about recognising that long-term returns are increasingly linked to environmental, social, and governance performance. Capital is flowing to projects that support clean energy, inclusive growth, and responsible innovation. ESG is no longer a footnote – it’s becoming a core part of investment criteria.
Through his leadership at the UN Sustainable Stock Exchanges Initiative and as Chief Editor of the World Investment Report, Dr. Zhan has helped position sustainability as a central principle of modern investment policy. The goal? To align private capital with public priorities – from infrastructure and technology to climate and development.
For regions prepared to lead on sustainability, this shift represents a significant opportunity.
Enter the Gatwick Diamond: focused, connected, and ready
So where does a region like the Gatwick Diamond fit into this?
Quite well, actually.
The area has quietly built a strong reputation for exactly the qualities modern investors value: reliable infrastructure, connectivity, sector focus, and a growing commitment to sustainability. It’s home to a skilled workforce, a globally connected airport, and increasingly, it’s showing how clean growth and economic development can go hand-in-hand.
Dr. Zhan has urged investment promotion agencies to move beyond traditional marketing and think in terms of “ecosystem design” – building environments that actively support innovation, supply chains, and resilience. That’s precisely the direction regions like the Gatwick Diamond are taking.
It’s not trying to be everything to everyone. It’s building strength in areas that matter – and that’s what gives it an edge in a more complex investment environment.
What should regions like Gatwick Diamond be doing next?
According to Dr. Zhan, the future of FDI will depend on strategy, cooperation, and data. Policymakers and regional leaders need to shift their thinking: away from competing purely on incentives, and towards building credible, future-ready investment ecosystems.
- That includes better collaboration between local governments, economic agencies, universities, and the private sector.
- It means investing in green technology, digital infrastructure, and skills that match future demand.
- And critically, it means focusing on transparency and long-term alignment with national and global development goals.
The data, as Dr. Zhan points out, still has gaps – but the direction of travel is clear.
In summary? Global investment is changing – not disappearing. For regions that are agile, sustainable, and well-connected, this shift presents a real opportunity. Dr. Zhan’s message is simple but powerful: adapt with purpose.
And if we do, regions like the Gatwick Diamond won’t just keep pace – they’ll lead.